Basel III reforms to the global capital rules are well on their way to being implemented, but regulators are having some trouble meeting imminent deadlines, according to the eleventh progress report on adoption of the Basel regulatory framework published on Wednesday by the Basel Committee on Banking Supervision.
All of the 27 jurisdictions that belong to the organization now have final risk-based capital rules, liquidity regulations and capital conservation buffers in force, the report says.
Additionally, all but one have issued final rules to introduce countercyclical capital buffers, 25 jurisdictions have issued rules for their domestic systemically important banks (DSIBs), and 18 have proposed rules establishing margin requirements for non-centrally cleared derivatives.
However, some jurisdictions are having trouble meeting the implementation deadlines for certain standards, the report says, including a new standardized approach for measuring counterparty credit risk, capital requirements for central counterparty (CCP) exposures, and capital requirements for equity investments in funds — all of which are due to be adopted by January 2017.
Regulators are still working on other aspects of the Basel III standards, including the leverage ratio and the net stable funding ratio, the report says. The deadline for full implementation is 2019.
The Basel Committee report also notes that all of the countries that have global systemically-important banks (G-SIBs) under their jurisdiction have a final framework in effect.